A useful skill when analyzing MLM companies is to know how to calculate the Net Payout of a particular company. This calculation can give you necessary insight as to how the company compares to other MLMs.
There are many competitive advantages that you will want to look at when analyzing MLM companies to determine if the company is a fit for you or not. Knowing the Net Payout is a significant piece to this puzzle.
An MLM Net Payout calculation simply tells a person; for every dollar that comes into the MLM company, how much goes back out to the Distributors? Obviously the higher, the better and can tell us if the company is generous or not in their pay plan.
The problem is that a lot of people get talked into joining MLM companies that are not at a hefty Net Payout. They somehow got lost in the glitz and glamour of how the company was presented to them.
Bottom line is, do not get caught up in hype, but rather get caught up in the facts.